NYC Tax Proposal: DSA Pushes for Middle-Class Inclusion in Tax Reforms

The Democratic Socialists of America (DSA) have long championed their “Tax the Rich” initiative, which focuses on taxing millionaires. However, the New York City chapter of the DSA is now proposing a series of tax increases that could significantly impact middle-class residents of New York.

In a move that diverges from previous campaigns, the DSA’s NYC chapter is questioning potential candidates on their willingness to support higher income taxes for individuals earning more than $300,000 a year. This threshold is significantly lower than the $1 million benchmark previously advocated by socialist figures such as Mayor Mamdani.

Additionally, the DSA-NYC is advocating for the imposition of taxes on New Yorkers who inherit more than $250,000. This proposal is outlined in recent candidate questionnaires reviewed by The Post. Currently, New York’s estate tax only applies to estates valued over $7.35 million.

The party’s agenda also includes other progressive tax measures, aligning with Mayor Mamdani’s known support for their platform.

Despite their efforts, DSA lawmakers have not succeeded in advancing a proposal to introduce a 0.5% tax on stock, bond, and derivative trades.

DSA lawmakers have already failed trying to introduce legislation that would impose a 0.5% tax on trades in stocks, bonds and derivatives.

• Increasing taxes by a yet-to-be-determined rate on investment income from money-market accounts, government bonds and other assets.
• Curbing longstanding deductions on charitable contributions and mortgage interest.
• A new “wealth tax,” likely referring to the Fair Share Act under consideration by state legislators, that would green-light Mamdani’s proposed 2% surcharge on NYC millionaires.
• A new, yet-to-be-determined tax on any financial transaction.

Although not included in the questionnaires, the DSA taxman is also scheming to squeeze additional taxes out of New York married couples making more than $500,000 combined.

The DSA questionnaires prove the far-left faction wants to go after average New Yorkers — not just billionaires, said NYC Councilman Frank Morano.

“In New York City, someone making $300,000 isn’t a hedge-fund titan,” said the Staten Island Republican.

“It’s often a small business owner, a successful contractor, or a two-income professional family trying to afford a mortgage and raise kids.

“Now they want to tax inheritances starting at $250,000, punish investment income, and even curb deductions for charitable giving. That doesn’t just hit the wealthy. It hits the middle class, the upper-middle class, and the very people who already carry the tax burden in this city.”

DSA-backed pols who supported the measures in the questionnaires include Diana Morero, who won a special election last month to fill Mamdani’s former Queens assembly seat; Queens Assemblywoman Claire Valdez, who is running for Congress; Darializa Avila Chevalier, who is challenging Harlem-based Democratic Rep. Adriano Espaillat; and state Assembly candidates Conrad Blackburn, David Orkin and Samantha Kattan.

However, the inheritance-tax proposal proved to be too much for Brooklyn Councilman Chi Ossé, a card-carrying member of the DSA.

Ossé, who mulled a Congressional run last year, wrote in his questionnaire the tax’s threshold must be “much higher” than $250,000 to  â€œavoid hurting working class Black homeowners in Bed-Stuy.”

“A generational family home, purchased for very little, could be valued at over a million dollars today, leaving Black working-class community members facing an unaffordable tax bill,” said Ossé, who in December dropped his bid to primary House Minority Leader Hakeem Jeffries after Mamdani successfully lobbied the DSA not to endorse him.

Former Gov. Andrew Cuomo also ripped the proposed tax hikes.

“This isn’t ‘Tax the Rich’ anymore — it’s tax everyone who hasn’t already left New York,” he told The Post.

“New Yorkers are already struggling with affordability, and raising taxes on working and middle-class residents will only be a boon for moving companies. The answer is growing jobs and expanding our tax base — not socialist dogma that will only drive the very people our economy depends on out of state.”

The DSA-NYC did not return messages.